The consideration comprises USD 117.00 million in cash and the assumption of USD 38.90 million in debt.

Based on AERT’s close of USD 0.10 on 16th March 2017, the last trading day prior to the deal being announced, the offer price represents a premium of 33.3 per cent.

Tim Morrison, chief executive of the target, noted: "This is a compelling transaction that maximises shareholder value. We believe this is the right partnership to meet the evolving needs of our customers while furthering our ability to create best-in-class products.

“We are excited by the opportunities for AERT under Oldcastle Architectural's ownership, and we look forward to being a part of this dynamic new chapter."

Stifel Nicolaus & Company and Kilpatrick Townsend & Stockton have both been hired to advise the buyer on the deal, while William Blair & Company and Paul Hastings are assisting the target.

The acquisition provides an exit for private equity firm HIG Capital, which originally invested in the company in March 2011.

Both boards have unanimously approved the transaction, which is expected to close in the second quarter of 2017.

Founded in 1989, Arkansas-based AERT converts reclaimed plastic and wood fibre waste into outdoor decking and fencing and door and window components.

In the 12 months ended 31st December 2016, the company generated net sales of USD 85.30 million, a 3.2 per cent increase on USD 82.70 million in the previous year.

Net income totalled USD 2.20 million for the period, compared to a loss of USD 900,000 in FY 2015.

Georgia-headquartered Oldcastle claims to be the leading supplier of masonry and hardscape products for North America's building and landscaping markets.

The firm has over 172 operating locations and 5,300 employees across 33 states and five Canadian provinces.